$343m capex projected for Niger uranium project
Canadian developer GoviEx has confirmed the strength of its Madaouela project, in Niger, delivering a positive feasibility study at a time when inflationary pressures are having a significant impact on the development of new projects and operating mines.
The feasibility study, prepared by SRK Consulting and SGS Bateman, projects an initial capital outlay of $343- million for a mine that will produce 50.8-million pounds of triuranium octoxide (U3O8) over a 19-year mine life.
The study yielded an aftertax net present value, using an 8% discount, of $140-million and an internal rate of return of 13.3%.
Based on a uranium price of $65/lb and a molybdenum price of $11/lb over the life-of-mine, the project is forecast to generate $672-million in free cash flow, including capital expenditure, and is forecast to generate an average of $82-million in earnings before interest, taxes, depreciation and amortisation every year.
“We are delighted with the series of elegant engineering solutions our technical team has achieved to place the Madaouela project ready for development and to potentially become one of the first new mines developed in this exciting new uranium cycle,” said CEO Daniel Major
.
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